Haddad: Let’s expose billionaires who ‘suck’ Budget – 06/04/2023 – Market

Minister Fernando Haddad (Finance) said this Thursday (6th) that he considers the Brazilian tax system “very unfair” and that the government of Luiz Inácio Lula da Silva (PT) intends to correct distortions by taxing large companies to reduce the privileges of the super-rich who are ” sucking on the public budget”.

“I, as a citizen, consider our tax system very unfair. I don’t think it’s fair to make an adjustment [fiscal] about who is in need of a push to move up in life, to grow and to develop. And keep these teats open by the Budget, without transparency, “he said.

“My desire is to list what is happening. Where is the public money going? When citizens find out what is happening, they will be indignant. ‘Doesn’t my salary go up so that this billionaire can continue sucking on the public budget?'” , he added. “Let’s open this up for the country to make a decision about what it wants to be.”

The minister has been defending that it is necessary to collect taxes from those who do not pay and want to restrict companies that have tax benefits granted by states via ICMS from deducting IRPJ and CSLL, two federal taxes, by closing legal loopholes for this option when the activity is costing (allowing only for investments).

According to an estimate by the Treasury, the Brazilian State subsidizes the cost of companies at the level of R$ 88 billion. According to the minister, the government is considering taxing around 500 large companies that fit these conditions.

“We are not talking about small companies, medium companies, we are not even talking about large companies. We are talking about huge companies”, emphasized Haddad.

“From 400 to 500 companies with super profits, which, by means, in my opinion, illegitimate, included in the tax system, which is indefensible, how to subsidize the cost of a company that is making a profit. If a company is making a profit, why that the government is going to provide money by subsidizing this company?” stated.

The head of the Treasury also commented that the president of the Central Bank, Roberto Campos Neto, made a calculation that shows that the country fails to collect about R$ 300 billion with tax distortions.

“He [Roberto Campos Neto] did an exercise at the Central Bank on the list of barbarities of our tax system, which is benefiting those who don’t need it, he reached the account of R$ 300 billion”, he said.

Haddad also stated that the last word rests with the National Congress. “If he [Congresso] don’t want to make billionaire companies pay a little more [de imposto] of what they pay today, because they pay very little, he’ll have to look the other way and cut the meat of those who don’t have it, who’s on the bone.”